Funds will be used to fuel DTC growth and establish national retail presence
Preferred Stock has fixed conversion price into common shares of $1.60
New York, NY, March 03, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Emerald Organic Products, Inc. (EMOR) (“Emerald” or the “Company”), a diversified health sciences company which includes cannabidiol (“CBD”)-focused products, today announced that it has entered into definitive agreements to receive $5,000,000 in equity capital from Bedrock Group Holdings LLC (“Bedrock”, or the “Investor”). Bedrock is a private equity firm focused on providing growth capital to select emerging growth companies. Under the terms of the agreement, Bedrock will be entitled to covert its $5M in Series C Preferred Stock investment into common shares of the Company at a fixed price of $1.60.
“After working with Emerald Organic’s management team over the last several months, we believe we have finally found the right leadership group to make our first investment in the hemp space,” said J. Roth, Manager of Bedrock. “Similarly to the end of alcohol prohibition in the 1930s, we believe the end of prohibition for hemp has created a unique opportunity to participate in the legal formation of businesses that will help create a new and highly profitable industry for generations to come. Now that we have found the right management team to get behind, we intend to support Emerald with the necessary financing to allow it to make a significant impact in the emerging hemp industry, including potentially providing additional funding beyond this initial injection to support growth and certain strategic initiatives to make Emerald a leading company in the hemp health & wellness space.”
“The funding from Bedrock, a highly regarded private equity firm, represents a significant vote of confidence in our management team’s ability to execute in the challenging emerging hemp industry,” said Ian Parker, Chief Executive Officer of Emerald Organic. “This funding is instrumental to Emerald’s future because it now allows us to confidently accelerate our execution plans and enter highly sought-after retail distribution channels by negotiating distribution agreements with retailers from a position of strength, as well as begin to implement our direct to consumer (DTC) strategy by entering into marketing agreements that can be supported with the necessary capital to bring the Company to significant revenue growth. Additionally, we intend to be opportunistic in terms of acquisitions in order to fortify our position in the industry.”
About Emerald Organic Products Inc.
Emerald Organic Products, Inc. (EMOR), through its flagship Pura Vida brand, has developed and recently commercialized a line of vitamins and supplements with certain proprietary CBD health and wellness products which will be marketed nationally and in certain foreign countries through various marketing and sales distribution channels including experienced wholesale distributors and a professional e-commerce platform www.puravidavitamins.com. These hemp-based proprietary Pura Vida Vitamins products include CBD vitamins, chewable CBD gummies, and gummy bears, CBD liquids, drinks, CBD tinctures, CBD cosmetics, and others. Emerald has established Emerald Organic Life Sciences, Inc. to develop biopharmaceutical assets licensed, from Amarantus Bioscience Holdings, Inc. (AMBS), in the fourth quarter of 2019.
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Safe Harbor Statement: Statements in this news release may be “forward-looking statements”. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and neither Pura Vida Health, LLC nor Emerald Organic Products Inc. undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.